VA Funding Fee Exemptions
Here is what the VA actually requires for funding fee exemptions in 2026, in plain English.
The rule for 2026
The funding fee is waived for veterans receiving (or eligible for) compensation for a 10%+ service-connected disability, Purple Heart recipients on active duty, and eligible surviving spouses — a savings of roughly 2-3% of the loan.
The VA sets the baseline, but approved lenders can add stricter "overlays." Meet the VA standard first, then confirm whether your lender layers anything on top.
Documentation you'll need
- Certificate of Eligibility (COE)
- Pay stubs or LES (active duty) and two years of W-2s/returns
- Two months of bank statements
- Explanation letters for any credit events
VA rules are periodically revised. Join the alerts to be told before changes affect your file.
VA Alerts, Free to Your Inbox
Free to join in under 30 seconds. Get notified when it is time to act on your VA benefit.
Free to join. Msg & data rates may apply; reply STOP to opt out. See our Terms & Privacy Policy.
Frequently Asked Questions
- VA Funding Fee Exemptions — what's the bottom line for 2026?
- The funding fee is waived for veterans receiving (or eligible for) compensation for a 10%+ service-connected disability, Purple Heart recipients on active duty, and eligible surviving spouses — a savings of roughly 2-3% of the loan.
- Does this affect my $0 down or PMI?
- No — the VA benefit's zero down payment and no monthly mortgage insurance apply throughout.